TELECOMMUNICATIONS INDUSTRY OMBUDSMAN INDUSTRY TELECOMMUNICATIONS Telecommunications Industry Ombudsman Annual Report 1999:2000 1999:2000 ANNUAL REPORT 1999:2000 ANNUAL Telecommunications Industry Ombudsman Ltd ACN 057 634 787 Telephone +61 3 8600 8700 Facsimile +61 3 8600 8797 Freecall™ 1800 062 058 Freefax™ 1800 630 614 TTY 1800 675 692 Translator & Interpreter Service 131 450 Website www.tio.com.au PO Box 276 Collins Street West, Melbourne Victoria 8007 Australia Level 15, 114 William Street, Melbourne Victoria 3000 Australia Telecommunications Industry Ombudsman Telecommunications Industry Ombudsman 3807 TIO 2000.xps 13/7/01 12:50 PM Page 1 Telecommunications Industry Ombudsman Annual Report Free, independent, just, informal and speedy resolution of complaints about telecommunications services. Contents 1999–2000 at a Glance 2 Statement from the Chairman of Council 4 Statement from the Chairman of the Board 6 Ombudsman’s Overview 8 TIO Operations 10 Membership 18 Complaint Handling 20 Telephone Service Investigation Issues 26 Internet Service Investigation Issues 39 Profile of Complainants 44 Guide to TIO Statistics 47 Glossary 49 TIO Members 51 Directors’ Report and Financial Statements 57 3807 TIO 2000.xps 13/7/01 12:50 PM Page 2 1999-2000 at a glance 1999-2000 at a glance Complaint Total contacts Complaint breakdown (’000) (percentage) numbers • 67,761 contacts 1994|95 received, a 5.2% increase over the 1995|96 previous year • Total contacts 1996|97 included 13,361 enquiries which did 1997|98 not constitute a complaint, leaving 54,400 complaints 1998|99 Telephone-related 92.5% • As a single 1999|2000 Internet-related 7.5% complaint may involve more than 0 10203040506070 one issue, the TIO investigated 60,796 See page 47 for issues an explanation • 92.5% of of the TIO’s TIO membership growth complaints related complaint to telephone statistics 1996 1997 1998 1999 2000 1000 services, compared to 94.0% last year 800 • 7.5% of complaints related to internet access services, 600 compared to 6.0% last year 400 Membership • Number of members 200 increased from 866 to 991 0 • ISPs make up 85.9% of members TIO membership Complaint outcomes At the TIO composition Excludes Level 1 complaints • TIO staff increased from 27 to 36 Internet Service Providers 851 Substantially in favour 28.3% Telephone Service Providers 68 Partially in favour 19.0% Telephone Service Not in favour 15.1% Providers & Internet Not recorded 37.6% Service Providers 37 Carriers 35 Page 2 Telecommunications Industry Ombudsman Annual Report 1999–2000 3807 TIO 2000.xps 13/7/01 12:50 PM Page 3 1999-2000 at a glance 1999-2000 at a glance Telephone Total number enquiries, complaints and issues (’000) A single complaint may involve more than one issue issues An enquiry is a contact which does not constitute a complaint • Billing issues 70 decreased from contacts enquiries 37.4% to 26.4% 60 issues • Customer transfer complaints 50 issues rose from 9.7% to 14.6% 40 • Issues about staff 30 of telephone companies increased 20 from 2.3% to 6.9% 10 • Provision of service issues increased 0 from 14.7% to Total contacts: 67,761 Enquiries & complaints Total issues: 60,796 16.3% Internet Complaint mix (percentage) Method of complaint (percentage) complaints • Billing issues fell from 60.4% to 49.0% • Issues about internet access rose from 19.4% to 26.3% • Issues about staff of internet service Level Method providers increased Level 1 93.5% Toll free number 85.1% from 0.4% to 6.6% Level 2 4.2% Written 12.0% • Issues about Level 3 2.2% Email 2.8% internet contracts Level 4 0.1% In person 0.2% rose from 8.0% to 10.3% State distribution of complaints Complaint resolution times (days) (percentage) Level 1 complaints are usually resolved within two working days NSW Victoria Level 2 Queensland SA Level 3 WA Tasmania Level 4 ACT NT 0 10203040 0 20 40 60 80 100 120 Telecommunications Industry Ombudsman Annual Report 1999–2000 Page 3 3807 TIO 2000.xps 13/7/01 12:50 PM Page 4 Statement from the Chairman of Council of Chairman the from Statement As in previous years, the TIO encountered many new challenges during 1999- 2000. The number one issue was, and continues to be, the increasing complexity and volume of complaints handled by the TIO. This has largely been brought about by increasing competition in the industry and the growing popularity of the internet. While the TIO receives and handles more than 85% of its complaints via telephone, the TIO investigations area is not a call centre in the normal sense. The demands of receiving calls and investigating the resulting complaints require a high level of professionalism and skill on the part of Investigations Officers. This unique environment calls for a unique approach to maintaining the TIO’s high standards in the face of increasingly complex complaints. The Council thanks Ombudsman John Pinnock, Deputy Ombudsman Deirdre O’Donnell and the staff of the TIO for responding admirably to the demands for increased performance. The Council has worked very closely with TIO staff to develop a benchmarking approach for call handling and investigation. Results to date are encouraging and will serve as a strong base for further work in this coming year. The Council is also grateful for the support of the Board, in particular former Chairmen Graeme Ward and John Rohan who resigned as Directors during the year. During their time on the Board Graeme and John brought a wealth of experience and a common-sense approach to dealings with TIO, and made many valuable contributions to the Scheme. The Council welcomes Andrew Birch, Director of Network Operations at Vodafone Australia Pty Ltd, as the new Chairman of the Board. Long-term Council members Ted Benjamin, formerly Director of Consumer Affairs at Telstra Corporation, and Graeme Holm, formerly General Manager of Corporate and Regulatory Affairs at Vodafone Network Pty Ltd, resigned from Council during 1999-2000. The Council wishes Ted and Graeme all the best in their retirement. Other new faces on Council include Bob Samarcq, representative for Telstra Corporation, and Ken Roughley of Vodafone Australia. Gordon Frend also joined Council as the new Consumer Representative. The Hon Tony Staley Chairman of Council Page 4 Telecommunications Industry Ombudsman Annual Report 1999–2000 3807 TIO 2000.xps 13/7/01 12:50 PM Page 5 THE HON TONY STALEY MS PAM MARSH MR BOB SAMARCQ Chairman of Council Consumers’ Telecommunications Network Director External Relations, Public Affairs and Corporate Marketing, Telstra Corporation Ltd MR EWAN BROWN MR GORDON FREND MR KEN ROUGHLEY Executive Director National Farmers’ Federation Product Operations Manager The Small Business Enterprise Vodafone Australia Pty Ltd Telecommunications Centre Ltd (SETEL) MS VIC MARLES MR ANDREW BEDOGNI MR BRIAN PERKINS Coordinator Manager Director Communications Law Centre, Regulatory Affairs, Regulatory and Legal, AAPT Ltd Victoria University of Technology Cable & Wireless Optus Telecommunications Industry Ombudsman Annual Report 1999–2000 Page 5 3807 TIO 2000.xps 13/7/01 12:50 PM Page 6 Statement from the Chairman of the Board the of Chairman the from Statement As the recently appointed Chairman of the Board, I am looking forward to providing the support and leadership that will result in the continued success of the TIO and its members. As the TIO continues to resolve disputes for Australian telecommunications consumers, 1999-2000 was a year of significant growth. The number of consumer enquiries received by the TIO has risen by more than five percent over the past year. Increasingly, we are assisting consumers with more complex enquiries and complaints, which are clearly being driven by further market and technology changes in the telecommunications industry. During the year, TIO membership also grew considerably to reach 991 members from 866 members last year. The TIO extends a warm welcome to our new members and anticipates their contribution and participation in the Scheme. During the past year, the TIO Board considered a number of issues, including: a review of the structure of the Board and Council; a review of performance indicators for the investigations area; oversight of the TIO’s year 2000 compliance program; consideration of several jurisdictional issues; and approval of the TIO’s budget and business plan. The TIO is confident that with the help of our new and existing Scheme members we are in a strong position to meet the future challenges of a burgeoning telecommunications industry. After a long association with the TIO as Directors and Chairmen of the Board, Graeme Ward and John Rohan resigned from the Board during 1999-2000. Graeme and John were both very active on the Board and made significant contributions to the TIO. On behalf of the TIO and my fellow Board members, I would like to thank Graeme and John for their enormous effort in laying the foundation on which our success has been built. During 1999-2000 the TIO also farewelled Board members Kevin Dinn, Mark Gell, Colin Marland, Deirdre Mason and Stephe Wilks. The TIO sincerely thanks them for their contributions during their respective terms. Looking to the future, the introduction of a new complaint management system this year will help facilitate the TIO’s ability to attend to and help resolve consumer complaints. As consumer enquiries grow, the TIO is equipping itself with systems that enable members and telecommunications consumers to be served with the greatest speed, confidence and accuracy. The Board would like to thank the Ombudsman, John Pinnock, Deputy Ombudsman Deirdre O’Donnell, Administration Manager Jane Hill, the TIO Council and staff for their continued support, dedication and enthusiasm. It is their collective commitment that ensures the ongoing success of the TIO this coming year and beyond.